This Couple Made $50K Buying Their First Home
Buying a home is not the easiest thing in the world. In fact, it can be downright frustrating. After you get through the complicated process of qualifying for a bank loan, you’re left to it – finding a home that is affordable, desirable and suitable for your family.
The average person does not go into the process of buying their first primary residence with the intention of making money on the deal. But two of my students have done just that. Jesse and Cynthia had been searching for a home in Southern California for a while, but kept falling short when it came time to submit bids on the properties they wanted. They came to me for strategy and I gave it to them.
I’ve said it before and I will say it again: When you have the right training, you can make money on every property you buy, including your primary residence. One of the things that trips us up when it comes to investing in real estate is the romance of buying a house. The real estate industry has sold us all such a big empty box when it comes to buying and selling property. They complicate the home buying process and make you jump through hoops to qualify for a bank loan. The retail real estate industry is set up make you feel like you get to be a part of a special club when a bank says you qualify to buy a house.
Don’t get me wrong. Qualifying for a home loan is fantastic! But you also have to remember the bank is not giving you that money, you are paying for it! And you are paying the bank a handsome fee for access to that money. So, I want you to be able to keep things in perspective. Banks don’t exist to lend money, they exist to make money.
The strategy I gave Cynthia and Jesse boils down to one fundamental truth about real estate – find a deal that makes your home an asset immediately, not in the sweet by and by. It is always in your best interest to buy a house that already has equity built into the purchase price. Having equity in a home means that if you close on the house today, you should be able to re-sell that house tomorrow and make a profit of at least $20,000 or it’s not a great deal.
Watch this video so you understand how Cynthia and Jesse were able to finally purchase a house and make $50,000 doing it without having to sell their home.